Nothing to See Here: Greeks Complete Buyback

Greece Confident Bond Buyback Needed for Aid Succeeded – Bloomberg.

The final tally was €31.8bn worth of bonds surrendered at an average price of 33.5¢ on the €. Greek banks anted up the shortfall from Friday, because they need the aid that will be granted after completion of the deal.

Since the Greeks paid more than anticipated for the bonds, a shortfall of 2.6% of GDP has arisen. Not to worry, the debt to GDP ratio is a fiction based on ridiculous Greek economic growth coincidentally commencing right after German elections and continuing for eight years.

It seems the troika is counting on Greece turning into the Hellenic Tiger in the near future. If you cannot lower debt, than merely raise the denominator, GDP. Merkel believes this deal will get her smoothly through elections. If GDP, employment and tax receipts continue their free fall, a €1bn funding gap per month will have to be covered by the autumn:

https://dareconomics.wordpress.com/2012/12/06/greece-will-require-a-4th-bailout-before-german-elections/

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